Fisher says Fed has more liquidity options

By Alister Bull

SAN ANTONIO (Reuters) - Dallas Federal Reserve Bank President Richard Fisher said on Wednesday that the U.S. central bank had taken "substantial and many" measures to boost market liquidity, and had not yet run out of options.

"I do not think we have exhausted our tool kit. But at the same time, the measures and initiatives that we have taken are to be considered against doing the minimum necessary to restore market efficacy," Fisher told reporters after a speech.

The Fed has taken a series of emergency measures to keep the financial system from seizing up and Fisher said the actions have helped.

"I hope and I think that it has alleviated some of the pressures," he said.

Fisher is a voting member of the Fed's interest rate-setting policy committee this year and dissented against its last rate cut at its March 18 meeting. Fed documents on Tuesday showed he preferred the Fed to focus on liquidity measures.

A Fed official said separately on Wednesday that the central bank was considering further steps to tackle liquidity problems in case the actions already undertaken fail to gain traction.

Fisher made plain that additional steps would have to be justified very carefully.

"I believe, personally speaking, that we should do the minimum necessary to restore the efficacy of the system."